Peregrine Systems is facing the threat of bankruptcy following its refusal to disclose details regarding its cash balance. Peregrine has not posted any information on its cash balance since March 31, when the company said that it had a cash balance of approximately $100 million. Since March 31, Peregrine has only revealed that its cash balance has fallen below targeted levels for the last quarter.
Peregrine Systems has been rocked in recent weeks by revelations of accounting irregularities. The company admitted that it had overstated its revenues by $100 million for fiscal years 2000 and 2001, as well as part of 2002.
The company has recently sold its supply chain enablement business for $35 million and has also received a $50 million loan from Ableco Finance. Peregrine Systems is expected to sell its FacilityCenter and TeleCenter software, as well as its fleet management products. Rumours suggest that Peregrine maybe also ready to part with Remedy, the company it acquired for $1.08 billion in June 2001.